Daily demand for a product is 130 units, with a standard deviation of 15 units. The review period is 10 days and the lead time is 10 days. At the time of review there are 70 units in stock.
If 90 percent service probability is desired, how many units should be ordered? (Use Excel’s NORMSINV() function to find the correct critical value for the given α-level. Do not round intermediate calculations. Round “z” value to 2 decimal places and final answer to the nearest whole number.)
Ordered quantity units
Expert Answer
Average daily demand (d) = 130 units
Standard deviation of
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